The mini trade deal between India and the US is going to be approved soon, it is reported that the two countries have been agreed between and the deal has been finalized. Perhaps the stock market has got the idea of ​​the deal, during the business on Tuesday, there was a significant rise in the last hour.
During the trading on Tuesday, the shares of companies exporting textile, garments, leather products increased. Actually, the US Trump government has announced to impose 35% tariffs on Bangladesh. These tariffs will be implemented from August 1. Let me tell you, the biggest competition in the Indian textile sector in the global market is from Bangladesh and Vietnam.
35 percent tariff on Bangladesh
Now that Trump has announced a strong 35 percent tariff on Bangladesh, this will now make Bangladesh’s textile products expensive in the US, which will help Indian companies to spread their business in America.
The consent on trade between India and America is going to be announced soon, India’s effort is to reduce American tariffs. Especially the way 35 percent tariff has been imposed on Bangladesh, there is a possibility of 10-20% tariff for India, given a 20% tariff deal with Vietnam. This will promote textile exports.
During trading on Tuesday, textile shares saw a rise of up to 7%. Shares such as Gokaldas Exports, Trident, Arvind Textile, Vardhman Textiles and Alok Industries jumped. There are two reasons for this boom: Tariff on Bangladesh and India-US deal expected.
All taxite companies are going to benefit from this deal, especially the companies that export America. Let us know about 5 such companies, whose revenue is received from the US market up to 70%. This agreement can open new opportunities for Indian exporters and strengthen the domestic economy.
1. Arvind Limited: More than 50% of revenue of Arvind Limited, which specializes in textile and garments, comes from the US. This agreement can ensure new orders and better profit margin.
2. Gokaldas Exports: According to FY2025 data, 70% revenue from the US, this deal will further increase exports.
3. Trident: 38% revenue in FY2024 is estimated to come from the US, the margin will improve due to tariff deficiency.
4. Vardhman Textiles: In FY2024, 42% revenue exports may increase the share of US market.
5. Pearl Global: 46-50% revenue is expected to benefit from the US, the deal.
Experts believe that this deal will be a game-changer for the textile sector, but the global trade risks will have to be monitored. Apart from this, IT sectors can also benefit from the deal, because ..
Wipro: More than 60% of the Revenue of Wipro (Wipro), which provides IT service, comes from the US. This agreement can help increase demand for IT services and reduce operating costs.
TCS (Tata Consultancy Services): America is a major market for India’s largest IT company TCS. This deal can reduce the cost of new contracts and existing projects.
(Note: Be sure to help financial advisor before investing in stock market)
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